Negative Call Volume Index

Negative Call Volume Index

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Negative Call Volume Index

Variable List Abbreviation: NegCallVolIndex

 

Variable Mode(s): Futures2

[ Note: appears in indicator list only after call volume selected ]

 

Parameter(s): NegCallVolIndex time periods

 

Description:

The sum of the fraction change in price during time periods of decreasing call volume.  The trend indicates whether prices are increasing of decreasing during time periods of decreasing call volume.  In theory the wise investors trade during time periods of declining activity, while the unwise investors trade during time periods of increasing activity.  Thus the trend should in theory indicate whether the wise investor is buying or selling.

 

Calculation:

                            Running total over n (time periods) time periods of

                                            (close - previous close) / previous close

                            for call volume down time periods.